The difference between comprehensive and collision insurance
Together, these two common types of auto insurance offer you protection when your vehicle is damaged. The type of damage they cover, however, is very different. Let’s begin with a description of each:
Collision Insurance covers damage to your vehicle in the event of a covered accident. Unlike liability insurance, which may cover damage to other vehicles or property, collision insurance may help to repair or replace your covered vehicle.
Comprehensive insurance pays for damage to your vehicle caused by covered events such as theft, vandalism or hail, which are not collision-related.
In some cases, comprehensive insurance covers the situations that collision insurance does not – which is why bundling the two together can work in your favor. View the table below to get a better understanding of situations each type of insurance can cover.
Your car hits an object, such as a tree
Your car collides with another vehicle
Your car rolls over
Your car is damaged due to hitting a pothole
An object falls on your car, such as a tree
An animal collides with your car
Your car is damaged due to fire or natural disaster
Your car is vandalized or stolen
Factors to consider
You may be wondering if having both types of coverage is necessary. In order to determine if you need collision insurance and comprehensive insurance, consider the following:
The value of your car – Knowing how much your car is worth is important. Is your car new and higher in value? If so, these coverages could save you from paying out of pocket in the event your car needs to be repaired or replaced.
Risk of an accident – Think about how often and how far you drive your car. If you have a long commute or drive frequently, the risk may be higher on average.
Your current savings – Would your savings allow you to cover the costs of an accident out of pocket? If your car were stolen, do you have the money to replace it?
Your area – Consider the area you live in and where you drive most frequently. Is your location known to have more reports of vehicle damage due to fallen branches or collisions with wildlife?
If considering the above factors have helped you determine that your car is high in value, you frequently drive long distances and your current financial situation would not allow for unexpected costs, having both comprehensive and collision insurance may be the right decision for you.
Get more help deciding on the right type of auto coverage for you with these car insurance tips.